Internal Promote - Carry Expectations
Hi all - being promoted to Senior Associate this summer, with opportunity for VP after a yearish. I'm not sure whether SA's receive carry, but wanted to get a market check on a) if I should be asking for carry now or wait until VP (my firm is historically a 2-3 year up and out), and b) general sense of what to ask for.
Another wrinkle - my firm has several fund strategies (all roughly the same size funds). Would my carry only apply to the fund I work for, or should it be across the 2-3 other funds? For reference sake all of these funds are sub-$1b, non-NYC.
In general, diversified investment firms will more likely pay you some small amount of carry from the global carry program if it exists (often casually referred to as "carry sausage") to keep you plugged into the success of the overall franchise. But the vast majority of your carry $ will come from the fund for which you work (think 90-10 as the split).
On your other question regarding whether Senior Associates get carry, I've seen it both ways at the UMM/MF shops -- can't comment on sub-$1bn funds. As a pure guess, I'd think you would receive at least some small amount of carry to make your total comp more competitive with larger shops if you're doing the same work.
As a senior associate (internal promote), I received carry without "asking". Granted, this was at a LMM fund ($500m) with one strategy.
Sounds like you're at a fund that's traditionally 2 and out and they are making an exception for you. Feels reasonable to ask for carry. As for amount, my carry dollars were ~1x annual comp (base/bonus). There are Gobuyside and other comp surveys you can google to get a sense.
so say your annual comp was 300k, your total carry value was 300k over the life of the fund, or averaged out to 300k annually?
Most of it is on a deal-by-deal basis so my carry dollars will go up every time we do a new platform deal and I get a carry check every time we exit a company. We're between funds which is why it is structured like this. I expect to get carry in the next fund.
I'm in a similar boat / timeline, although at a LMM (joined during fund 1). SA title at yearend (will have 3.5 years of associate experience by then, some of that experience was at a larger fund) and VP title bump the following yearend. SA comp is ~$250-300K + 1% carry in fund 2 (which works out to roughly $500K of carry dollars at work based on fund size).
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